12 Jun WORLEY’S PERMANENT WFH SHIFT; AIR NEW ZEALAND’S 800-DAY PLAN; POST-COVID-19 MEGATRENDS
The rapid and deadly spread of COVID-19 around the world – and the often drastic measures governments were forced to put in place to “flatten the curve” – resulted in yes, a new “normal”.
Now that we are getting back to our offices and our restaurants and cafes have reopened, the time has come to look not just at what is happening now but to start thinking about what is next.
With that in mind, we have decided to shift gears.
Instead of daily summaries of articles from around the world that explained what was happening through the worst of the pandemic, we will now produce a weekly wrap of what is likely to happen during the recovery phase.
We will complement the new, weekly newsletter with our regular podcast series as well as occasional insights and opinion on relevant issues.
WORLEY’S PERMANENT WFH SHIFT
- Cost cutting continues to be a focus with Global engineering firm Worley Parsons rethinking the way it operates. By shrinking its offices and halving the number of workers returning to the office full-time, it will save over $70 million the next 18 months. Corporate travel budgets will also halve, and Worley is considering reimbursing its staff for energy used at home, the cost of which would be significantly less than if they were working from the office.
- Worley also released a new statement on climate change this week, including a commitment to achieving net zero direct and some indirect greenhouse gas emissions by 2020. View the presentation here, and AFR article here.
AIR NEW ZEALAND’S 800-DAY PLAN
- Like most airlines across the globe, Air NZ has been hit hard by the COVID-19 pandemic which saw its passenger numbers down 98.9% in April. The AFR reports that the airline has an 800-day plan to ‘get back on its feet’. You don’t often see a company talking about an 800-day plan.
- Investors are expecting that Air NZ will tap equity markets to strengthen its balance sheet and the success of a capital raise will depend on how convinced investors are with the recovery story and the pricing of the deal. Read The AFR article here, and Air New Zealand’s announcement here.
KABOOM! THERE GOES RIO TINTO’S REPUTATION
- The AFR’s Peter Kerr dissects the miscommunication and failures that lead to Rio Tinto’s hugely controversial destruction of 46,000-year old rock shelters in the Juukan Gorge in May.
- The article reveals that a gradual breakdown in the relationship between Rio and the traditional landowners set the scene for this colossal blunder, which has left the miner’s reputation in ruins. Read the article here.
RETURNING TO THE OFFICE? IT’S IN OUR DNA
- A survey has shown that, overwhelmingly, 96% of respondents said they want to go back to the office in some form. Neuroscientist Matthew Lieberman, author of Social: Why Our Brains Are Wired To Connect, says our need to connect is as fundamental as our need for food and water. He says social exclusion creates a brain response similar to physical pain.
- Now, as our employers look at ways to get back to the office, we need to remember the lessons we learnt during WFH, as some of these should be brought back to the office. You can read the full Stephen Mansell article here.
CANNINGS ‘ON THE COUCH’ PODCAST – THERE HAS NEVER BEEN A MORE EXCITING TIME FOR AGMS
- In our latest On the Couch Podcast, Cannings Directors Susie Reinhardt and Craig Horlin talk about recent changes to regulation impacting listed companies and investors. From continuous disclosure to AGMs, we break down the news into what it means for companies and investors. Join in and listen here: https://lnkd.in/gYNsVZb
- The AFR’s Chanticleer believes COVID-19 has elevated six megatrends to the forefront of any discussion about creating value in the 21st century. Cloud computing, different demographics, ESG, debt, renewable energy and geopolitics should all be considered as a part of the environment within which business operates and evolves in response to human behaviour, government regulation and shareholder expectations. Read more on each of the trends here.
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